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Is Neo-Walrasian Macroeconomics a Dead End?

Academic Article
Publication Date:
2015
abstract:
After the 'new Great Crisis' exploded in 2008 it is widely recognized that mainstream macroeconomics - the last result of Lucas's anti-Keynesian revolution of the 1980s which tried to give macroeconomics sound neo-Walrasian microeconomic bases - has failed to anticipate and then appraise the crisis. Has this crisis revealed a failure of this macroeconomics as a scientific theory? Mainstream macroeconomists defend their models on the basis of their alleged superiority in terms of clarity and coherence. The thesis of this paper is that this claim about superiority is false. The paper argues that the reasons for the failure of mainstream macroeconomics - in particular its poor predictive performance and poor interpretative weakness - reside in the implications of the neo-Walrasian legacy and the problems connected with the implementation of that programme.
Iris type:
01.01 Articolo in rivista
Keywords:
Neo-Walrasian Macroeconomics; Lucas; DSGE models; theory-driven econometrics
List of contributors:
Sella, Lisa
Authors of the University:
SELLA LISA
Handle:
https://iris.cnr.it/handle/20.500.14243/327435
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URL

http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2015dip/wp_21_2015.pdf
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